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10 February 2017

WHAT’S HAPPENING WITH THE GREAT FIREWALL OF CHINA IN 2017?

Put simply, lots. Despite proclamations by the Chinese President that the country is open for business, new Internet restrictions suggest otherwise.

The Great Firewall of China and the Golden Shield Project are set to become even more obstructive. A twelve-month project to tighten up the country’s Internet borders is now underway by the authorities.

Having previously survived a crackdown in March 2016, Virtual Private Networks (VPNs), the most popular method of avoiding government restrictions and surveillance, are once again under threat.

This resurgence of Internet protectionism promises to affect financial organizations across the country as well as international traders connecting to Chinese exchanges and brokers.

Internet sovereignty is back on the agenda

Brokerages are familiar with these challenges already. Many have grappled with the Great Firewall since its inception in 1996.

Over the years, Chinese brokerages and international firms remotely trading in China have invested heavily in their connectivity only to be plagued by poor latencies and unsatisfactory performance.

This move by the Chinese government threatens to nullify any progress, unleash a host of new technical issues and shake customer confidence.

Also vital is the capability to act on market trends as quickly as possible.

For businesses with an established customer base in China, keeping abreast with regulatory changes is crucial.

For example, how does the recent announcement from the Cyberspace Administration of China affect hosting within the country? Does this new clampdown on mobile marketplaces affect companies offering applications for trading on the move?

For brokerages working on the London Metal Exchange and the Shanghai Futures Exchange, another example is pre-empting market events such as the annual slowdown that occurs around Chinese New Year.

Trading volumes drop as Chinese investors go on holiday and then inevitably spike again when they return. Can your network cope with and anticipate such changes without impacting your business?

As China’s situation is still evolving, make sure you stay informed with the latest updates here:

Supporting our customers in this way is one reason among many why companies choose us.

As one brokerage shared:

“It is crucial we have a network service partner that understands the Asian landscape and specifically the ever-changing dynamics of the Chinese market. We’ve been really impressed with BSO’s knowledge of the local market from day one and believe it was essential for developing the best solution for our needs.”